subdivision process

Hi all,
Long term lurker but first time posting.
I have a house on a big block of land which has council approval for demolishing then subdivision to two Torrens Title blocks.

I have engaged an agent to market the house prior to knocking it down to still generate some rental income. The agent now believes there are buyers who are interested.

The property has been fully funded through CBA with 20% of the loan being secured through equity from my PPOR.

I believe I have to inform my lender of my intentions to sub divide and sell. This is because they will need to release the titles to my conveyance to lodge the two titles to LTO. Is this correct? Will they need to see any contracts/valuations?

I intend to contact them Monday but just trying to see if I have everything covered.

Thanks in advance
 
Hi all,
Long term lurker but first time posting.
I have a house on a big block of land which has council approval for demolishing then subdivision to two Torrens Title blocks.

I have engaged an agent to market the house prior to knocking it down to still generate some rental income. The agent now believes there are buyers who are interested.

The property has been fully funded through CBA with 20% of the loan being secured through equity from my PPOR.

I believe I have to inform my lender of my intentions to sub divide and sell. This is because they will need to release the titles to my conveyance to lodge the two titles to LTO. Is this correct? Will they need to see any contracts/valuations?

I intend to contact them Monday but just trying to see if I have everything covered.

Thanks in advance

Speak with your conveyancer, will need to provide the bank a consent to subdivision. Note settlement won't be able to happen until new titles have been issued.
 
As Brady has noted, your conveyancer will put a request for consent to subdivide. After this is provided the titles will be lodged with the LTO etc. Right now I'm finding clients are waiting 3-4 weeks from here before titles issued.
 
Hi Markii
Just going through this at the moment.
My surveyor sent me the docs to sign and to forward to my bank who have also signed them. After paying necessary fees I was given a slip number to enable registration with LTO which my surveyor will do online. They said it could take 1 - 2 weeks???
 
Your calcs should also consider the tax impact of losing the CGT discount.

Sub divn through Council isn't a CGT event eg if you sell the one site etc Demo of the house and selling two lots of fresh subdiv land is. And its unlikely to result in a capital gain. A common mistake is to assume that cap gains 50% discount applies.

Ensure you use the correct tax calcs in your estimates.
 
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